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Gaming machine entitlements

A gaming venue must have an entitlement for each gaming machine it operates, allocated by the State in accordance with the Gambling Regulation Act 2003. The current gaming machine entitlements last ten years and will expire in 2022.

On 7 July 2017, the Minister for Consumer Affairs, Gaming and Liquor Regulation Marlene Kairouz announced new gaming machine arrangements (external link) that will help limit gambling related harm and give certainty to pubs, clubs and hotels across Victoria.

Under the changes, the number of gaming machines in Victoria will remain capped at 27,372 and the maximum number of gaming machines in a single venue will be frozen at 105.

The reforms include:

  • replacing the current 10 year term with a 20 year term, and requiring venue operators to make two sets of premium payments – the first in 2022 and the second in 2032
  • giving venue operators the opportunity to acquire post-August 2022 entitlements up to the number of entitlements they held on 7 July 2017 through an administrative allocation process, rather than a competitive process
  • increasing the maximum number of entitlements held by a club venue operator from 420 to 840
  • adjusting the 50:50 rule to facilitate the allocation of unused club entitlements to the hotel sector
  • determining premium payments for entitlements based on a venue’s gaming revenue
  • making changes to the current gaming machine taxation arrangements to make them more progressive.

These changes have been made as part of a review of the regulatory arrangements for gaming machines – enabling pubs, clubs and hotels to make decisions with certainty well before their current entitlements expire in 2022.

The allocation process is expected to be complete by the end of 2018.

New venue operators and existing venue operators wanting to acquire extra entitlements will have the opportunity to apply for entitlements not taken up during the initial offer.

Queries
If you have a query about the process, contact the Gaming Machine Allocation Project by email olgr.gmap@justice.vic.gov.au

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The department acknowledges Aboriginal and Torres Strait Islander people as the Traditional Custodians of the land and acknowledges and pays respect to their Elders, past and present.